“In a closely watched announcement Monday afternoon, the Treasury Department said it will be looking to borrow $776 billion, which is below the $1.01 trillion in privately held marketable debt the department borrowed in the July-through-September period, the highest ever for that particular quarter.
The borrowing level appeared to be somewhat below Wall Street expectations — strategists at JPMorgan Chase said they expected the announcement to be around $800 billion.
Treasury said it expects to borrow $816 billion in the January-through-March period, which is the government’s fiscal second quarter. That number appeared above Wall Street estimates, as JPMorgan said it was looking for $698 billion”
What’s important is no huge upside surprise to the borrowing amount like in Jul 31. In Jul, Yellen announced Treasury will borrow 1 trillion in Q3, up from the 733b previously thought, and 852b in Q4. The upside surprise triggered the bond sell off and consequently stock sell off. Now that there’s less bond selling pressure, 10 year rate should stabilize, which should stabilize stocks as well.